Dubai Holding Commercial Operations Group sells $2.5bn bonds

DUBAI, 27 January 2007: Dubai Holding Commercial Operations Group (DHCOG) launched its inaugural transaction into the debt capital markets, debuting with a three-currency benchmark transaction - the first ever in the international debt capital markets.The total proceeds raised were US$2.5bn.

JPMorgan acted as Global Co-ordinator, and JPMorgan and HSBC Middle East were Joint-Bookrunners on the transaction.

The order book registered over five times interest from more than 265 accounts, following an extensive series of road shows attended by investors from Dubai, Bahrain, Singapore, Hong Kong, London, Edinburgh, Glasgow, Munich, Frankfurt, Paris, Amsterdam and Helsinki.

"We are delighted with the strong global investor reception to our transaction. The investors showed strong interest in the Dubai story and the role of Dubai Holding in contributing to the economic growth of Dubai",

The book was highly diversified with 60% of orders coming from the UK, Benelux 8%, Germany 8%, Italy 6%, Asia 5%, Switzerland 4%, Middle East 4%, France 2%, Scandinavia 2% and other 2%.

"Our transaction demonstrates large international investor demand for Dubai and regional bonds. Our bond will serve as a liquid benchmark for future issuance out of Dubai and the region", commented Al-Ali.

The offering met its key objectives of maximising investor penetration and education in order to build a broad-based, diversified investor base for future bond issues from Dubai Holding Group and other Dubai-based entities.

"The bonds represent a diversified source of funding to support Dubai Holding's continuous growth and expansion plans", said Al-Ali, adding that "the bonds will be listed on the DIFX".

The transaction was announced simultaneously with the announcement of Dubai Holding Commercial Operations Group ratings of A1 stable (Moody's), A+ stable (S&P) and AA - stable (Fitch).

The ratings emphasised Dubai Holding Commercial Operations Group's aim to lead the market with clear and transparent corporate governance and desire to set international standards in Dubai and the Middle East region. JPMorgan acted as sole corporate structuring and rating advisor.

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